This is part of a series of stories that comprise TheStreet's Blue Chip Studio, which will illuminate issues related to corporate board performance, activism, dealmakers and personalities revealed by analysis of data generated by BoardEx, a business unit of TheStreet.
The rights plan is intended to reduce the likelihood that an investor or firm would gain unsolicited control of the company. The Plano, Texas- based retailer said the right entitles shareholders to buy one-thousandth of a share of newly-created Series D Preferred Stock for $25, which would become exercisable if a person or group purchases 15% or more of the outstanding common shares.
Shares of RCII were slightly lower during the trading session Tuesday.
The move by the board of directors comes after Rent-A-Center found itself as an acquisition target. Activist investor Engaged Capital LLC launched a campaign earlier this year, urging the retailer to sell itself "in whole or in parts." Glenn Welling's Engaged Capital owns 16.9% of outstanding shares, according to a March filing with the U.S. Securities and Exchange Commission.
Calls to Engaged Capital's media relations representative, Riyaz Lalani at Bayfield Strategy Inc were not returned by the time of publication.
The rent-to-own operator, which has seen revenues decline over the past year, recently reaffirmed its commitment to a turnaround, promising to cut costs.